deutsche bank swiss equities conference holcim positioned for future growth marco knuchel investor relations binit sanghvi investor relations may 18 2010

© Holcim Ltd 2010
Holcim – Positioned for future growth
Marco Knuchel – Investor Relations
Binit Sanghvi – Investor Relations
May 18, 2010
Deutsche Bank – Swiss Equities Conference
Phu My Bridge, Vietnam
2
© Holcim Ltd 2010
May 18, 2010Deutsche Bank – Swiss Equities Conference
Agenda
1
Strategy and positioning
2
Value driven investment criteria
3
First quarter 2010 results
4
Conclusions
5
Appendix – Maps
3
© Holcim Ltd 2010
May 18, 2010Deutsche Bank – Swiss Equities Conference
Holcim strategy…
…effective execution is the base for success
1
Reported as per 12M 2009 YTD
Product Focus
Geographic
Diversification

Local Management
Global Standards
• Two basic resources
• Cement
• Aggregates
• Value-adding products
and services
• Ready-mix concrete
• Asphalt
• Concrete products
• Business – strongly
anchored in local
markets
• Supported by
global standards
• Policies &
directives
• Exchange of
know how &
best practices /
benchmarking
• Truly global
• Balanced between
• regions
• mature / emerging markets
34%
16 %
15 %
6%
29%

25%
8%
22%
8%
37%
Latin America
Africa Middle East
Asia Pacific
Europe
North America
Net sales
1
Op. EBITDA
1
4
© Holcim Ltd 2010
May 18, 2010Deutsche Bank – Swiss Equities Conference
Holcim Value Chain
Transactional
Mortars
Ready-mix
Concrete
Asphalt
Concrete
Products
Direct Sales
Direct Sales
Traders
Wholesalers
Retailers

Traders
Wholesalers
Retailers
End-users
General
Contractors
Civil
Engineering
Channels
Transformational
Masons
Self - builders
Cementitious
Materials
(cement,
mineral
components)
Supply
Basic Materials
Processing
Aggregates
(sand, gravel,
stone, recycled
aggregates)
Infrastructure
Commercial /
Industrial
Building
Housing
Demand

A
p
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c
a
t
i
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s
Applications and
Construction Fields
5
© Holcim Ltd 2010
May 18, 2010Deutsche Bank – Swiss Equities Conference
-1.1%
0.6%
1.3%
-1.7%
4.4%
-2.3%
GDP Growth [%] (excl. China)
World
Mature
Market
Emerging
Market
2009

Holcim World
Mature
Market
Emerging
Market
GDP Growth weighted with Holcim op. EBITDA 2009 per country [%] (excl. China)
3.9%
2.7%
5.4%
5.7%
3.1%
8.2%
4.7%
3.5%
6.3%
6.4%
3.8%
8.8%
5.2%
3.9%
6.8%
6.7%
4.1%
9.0%
2010 2011 2012
Holcim generates its EBITDA in countries with
GDP growth above average
2009 Holcim
op. EBITDA split:
 Mature: 30%

 Emerging: 70%
Source: Nominal GDP per Capita (at PPP) in USD: International Monetary Fund - World Economic Outlook Database (April 2010), Holcim estimates
6
© Holcim Ltd 2010
May 18, 2010Deutsche Bank – Swiss Equities Conference
1970 2000 2030 2050
0
5
10
1.3
2.4
2.9
3.2
5.0
3.3
6.4
2.8
urban rural
1970 2000 2030 2050
0
5
10
1.3
2.4
2.9
3.2
5.0
3.3
6.4
2.8

urban rural
0
5
10
2050
1970 2000 2030
0
5
10
Emerging
markets
Mature
markets
0
5
10
2050
1970 2000 2030
0
5
10
0
5
10
2050
1970 2000 2030
0
5
10
Emerging

markets
Mature
markets
Demand drivers – population growth and
urbanization
World population
• Likely little or even no population growth in most developed countries
while population growth in emerging countries will continue
• In emerging and mature countries migration from rural areas into
urban agglomerations will continue
Source: United Nations, World Population Prospects, March 2009 – in billion
Population in rural and urban areas
7
© Holcim Ltd 2010
May 18, 2010Deutsche Bank – Swiss Equities Conference
Global construction outlook still rock-solid and
dynamic!
With a presence in 13 out of 15 top construction markets
Holcim is very well positioned to capture growth opportunities
USA 1
China 2
Japan 3
Germany 4
Spain 5
France 6
Italy 7
South Korea 8
India 9
UK 10
Canada 11

Brazil 12
Australia 13
Russia 14
Indonesia 15
China 1
USA 2
India 3
Japan 4
South Korea 5
Germany 6
Spain 7
Russia 8
UK 9
Canada 10
France 11
Italy 12
Indonesia 13
Brazil 14
Australia 15
Largest construction markets 2009E Largest construction markets 2020E
Global ranking Global ranking
Source: Global Construction 2020, Global Construction Perspectives, Oxford Economics, November 2009
8
© Holcim Ltd 2010
May 18, 2010Deutsche Bank – Swiss Equities Conference
Holcim BRIC pro-forma op. EBITDA 2009
1
Holcim influenced capacity 2009 (M tonnes)
Brazil
Russia/CIS

India
China
8%
4%
16%
72%
Europe 51.1 18%
North America 20.6 7%
Latin America 34.2 12%
Africa Middle East 27.2 10%
Asia Pacific 153.1 54%
Total influenced capacity 286.2 100%
- of which BRIC 111.4 39%
Russia – Shurovo renewal
All BRICs in one basket? Positions and challenges
are very different!
1
Pro-forma incl. China (Holcim participation in Huaxin Cement is 39.9 percent – therefore it’s not fully consolidated)
Brazil – platform for growth
Brasilia
Belo Horizonte
Rio de Janeiro
Sao Paulo
Southeast – in % of Brazil
 Population 53%
 GDP 73%
 Cement demand 66%
~85km~130km
9
© Holcim Ltd 2010

May 18, 2010Deutsche Bank – Swiss Equities Conference
Holcim BRIC pro-forma op. EBITDA 2009
1
Holcim influenced capacity 2009 (M tonnes)
Brazil
Russia/CIS
India
China
8%
4%
16%
72%
Europe 51.1 18%
North America 20.6 7%
Latin America 34.2 12%
Africa Middle East 27.2 10%
Asia Pacific 153.1 54%
Total influenced capacity 286.2 100%
- of which BRIC 111.4 39%
All BRICs in one basket? Positions and challenges
are very different!
Delhi
Calcutta
Mumbai
Madras
Pan-Indian footprint
Attractive positions
Rauri in the Himalayas
China – focus on provinces
>3,000 km

• Eight provinces along the
Yangtze River
• Market size of 450M t
• Huaxin – capacity 51M tonnes
1
Pro-forma incl. China (Holcim participation in Huaxin Cement is 39.9 percent – therefore it’s not fully consolidated)
10
© Holcim Ltd 2010
May 18, 2010Deutsche Bank – Swiss Equities Conference
Not only BRICs – a lot of other emerging markets
show above average growth rates…
…and Holcim holds top-three market positions in most of them
CAGR 2010 – 2020 construction output
Order of other emerging markets according to construction market size.
Source: Global Construction 2020, Global Construction Perspectives, Oxford Economics, November 2009
World
average
10%
5%
0%
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No Holcim
presence
Markets with
Holcim presence
11
© Holcim Ltd 2010
May 18, 2010Deutsche Bank – Swiss Equities Conference
Agenda
1
Strategy and positioning
2
Value driven investment criteria
3
First quarter 2010 results
4
Conclusions
5
Appendix – Maps
12
© Holcim Ltd 2010
May 18, 2010Deutsche Bank – Swiss Equities Conference
Holcim investment criteria –
set to secure long-term above average returns
Success factor – rigorous investment analysis and discipline
Product Focus
Geographic
Diversification
Local Management

Global Standards
• Strategic fit
• Position taking in line
with maturity profile of
the respective market
• Networking possibilities
and partnerships
• GDP growth
• Favourable demographics
• Deficit markets
• Substantial market share
• Networking
• Management and
manpower resources
• Resource management
• Local culture
embedment
Financials
• Value creation
• Financing in line with
Holcim policy
• Investment scorecard
• Accountability
13
© Holcim Ltd 2010
May 18, 2010Deutsche Bank – Swiss Equities Conference
Organic expansion – most efficient way to grow
USA: Ste Genevieve
Mexico: Hermosillo
Know how from past projects applied to new expansions

Indonesia: Tuban Java
14
© Holcim Ltd 2010
May 18, 2010Deutsche Bank – Swiss Equities Conference
Holcim’s cement capacity expansion projects
Cement capacity in million tonnes 2010 2011 Total
Europe 2.1 1.7 3.8
North America
Latin America 2.3 4.1
Africa Middle East
Asia Pacific 3.6 5.2
Total Group 8.0 3.5 13.1
1.8
2013
1.6
1.6
15
© Holcim Ltd 2010
May 18, 2010Deutsche Bank – Swiss Equities Conference
Agenda
1
Strategy and positioning
2
Value driven investment criteria
3
First quarter 2010 results
4
Conclusions
5
Appendix – Maps

16
© Holcim Ltd 2010
May 18, 2010Deutsche Bank – Swiss Equities Conference
Key financial figures
2009 2009 2010
LFL CIS FX Total
Sales volumes
- Cement (mt)
131.9 29.7 31.0 3.4% 1.0% 4.4%
- Aggregates (mt)
143.4 25.1 29.5 -2.8% 20.3% 17.5%
- Ready-mix (mm
3
) 41.8 8.7 9.5 -4.6% 13.8% 9.2%
Net sales 21,132 4,523 4'741 -3.3% 6.3% 1.8% 4.8%
Operating EBITDA 4,630 763 909 12.7% 4.7% 1.7% 19.1%
Operating profit 2,781 343 460 27.7% 3.2% 3.2% 34.1%
Net income before
minorities 1,958 195 66 -51.3% 0.5% -15.4% -66.2%
Net income (loss)
Holcim shareholders 1,471 74 -68 -154.1% 1.4% -39.2% -191.9%
Cash flow
3,888 -161 -257 -72.7% 1.9% 11.2% -59.6%
EPS in CHF
1
4.93 0.26 -0.21 -180.8%
Million CHF
(if not otherwise stated)
1st Quarter +/-Full Year
1

Calculated on the weighted average number of shares outstanding
Based on IAS 33 the average number of shares was retrospectively increased by 8.8%
17
© Holcim Ltd 2010
May 18, 2010Deutsche Bank – Swiss Equities Conference
Operating EBITDA by region
Δ
Q1 09/Q1 10 LFL Change in
structure
Currency Total
Europe 14.3% 2.5% -1.7% 15.1%
North America 40.7% 0.0% 5.6% 46.3%
Latin America -2.4% 0.0% 0.4% -2.0%
Africa Middle East 28.2% -3.8% -7.7% 16.7%
Asia Pacific 8.4% 8.8% 3.8% 21.0%
Total 12.7% 4.7% 1.7% 19.1%
-29
-14
-54
248
253
284
91
78
105
Million CHF
137
119
424
1

Q1 2008
Q1 2009
Q1 2010
507
419
403
18
© Holcim Ltd 2010
May 18, 2010Deutsche Bank – Swiss Equities Conference
Outlook 2010 – confirmed
• Europe – markets will recover but only slowly
• North America – no rapid recovery in the construction market
• Latin America and Africa Middle East – expect business to develop
on a stable footing
• Asia Pacific – markets will remain on track for growth
• Australia – the acquisition will make a solid contribution
• Cost savings – the savings implemented in 2009 will be retained
Holcim will start the next upturn from a stronger position
19
© Holcim Ltd 2010
May 18, 2010Deutsche Bank – Swiss Equities Conference
Agenda
1
Strategy and positioning
2
Value driven investment criteria
3
First quarter 2010 results
4
Conclusions

5
Appendix – Maps
20
© Holcim Ltd 2010
May 18, 2010Deutsche Bank – Swiss Equities Conference
Conclusions
Holcim’s strategy has successfully executed on the
opportunities offered by the emerging markets
• Early internationalization – today, Holcim is truly global with strong
positions in the most attractive construction markets worldwide
• Holcim built up a balanced portfolio – approximately 70 percent of
operating EBITDA is generated in fast growing countries
• BRICs account for approximately 30 percent of Holcim’s pro-forma
operating EBITDA
• Challenges in the BRICs are very different and need customized
approaches
• Value driven investment criteria – leverage know how from former
projects to new expansions globally
• Good performance in the first quarter 2010 – organic growth
achieved
21
© Holcim Ltd 2010
May 18, 2010Deutsche Bank – Swiss Equities Conference
Agenda
1
Strategy and positioning
2
Value driven investment criteria
3
First quarter 2010 results

4
Conclusions
5
Appendix – Maps
22
© Holcim Ltd 2010
May 18, 2010Deutsche Bank – Swiss Equities Conference
Positions in Europe
Cement capacity: 49.4 million t; further 1.7 million t with partners
1
Cement plant
Grinding plant/
terminal
Aggregates
Participation:
Cement plant
Under construction
1
1
23
© Holcim Ltd 2010
May 18, 2010Deutsche Bank – Swiss Equities Conference
Positions in North America
Cement capacity: 20.6 million t
Cement plant
Grinding plant/
terminal
Aggregates
24
© Holcim Ltd 2010

May 18, 2010Deutsche Bank – Swiss Equities Conference
Cement plant
Grinding plant/terminal
Aggregates
Participation:
Cement plant
Grinding plant/terminal
Aggregates
Under construction
Positions in Latin America
Cement capacity: 31.0 million t; further 3.2 million t with partners
1
1
1
1
25
© Holcim Ltd 2010
May 18, 2010Deutsche Bank – Swiss Equities Conference
Positions in Africa Middle East
Cement capacity: 11.2 million t; further 16.0 million t with partners
Cement plant
Grinding plant/terminal
Aggregates
Participation:
Cement plant
Grinding plant/terminal
Aggregates